Wednesday, 18 March 2009

Nats get it right again!

The SNP has been advocating a range of measures to address Scotland's poor relationship with alcohol and the opposition parties have been falling over themselves to criticise (shame on them!) One of the aspects they criticise, saying that it would have no effect, is the proposal to institute minimum pricing.

"It won't work" scream the kids on the block "it'll just punish social drinkers without affecting problem drinkers. Well, tell it to the economists, including Tim Harford who has a wee piece referring to some other economists' work. He does fling a warning, right enough, but it's one that backs up the SNP policy of having a range of measures to combat problem drinking:
Yet Sir Liam doesn't suggest more tax on alcohol - he suggests supermarkets and off-licences put up prices and keep the profits, making it lucrative to flog cheap booze. Unable to compete on price, supermarkets could compete in other ways - for instance, offering freebies (sweets? football stickers?) with every bottle of strong cider. Making cheap booze a supermarket's most profitable product is likely to backfire, one way or another. After all, supermarkets respond to incentives too.

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